Republic of the Philippines

CAVITE STATE UNIVERSITY NAIC

(Formerly CAVITE COLLEGE OF FISHERIES)
Bucana Malaki, Naic, Cavite
www.cvsu-naic.edu.ph

Management Department
Bachelor of Science in Business Management III
MKTG 70 – PROFESSIONAL SALESMANSHIP

Module II:
KNOWLEDGE AND SKILL REQUIREMENT
Lesson 1: Buying Behavior and the Buying Process

Prepared by:

RHONALYN C. PAPA
Assistant Professor I
Reviewed by

EDRIANE E. SERRANO
Management Department, Chairperson
Noted by:

MAT M. NUESTRO
Director for Curriculum and Instruction
 PREFACE

This module aims to provide students with management principles that emphasized on
sales, selling and techniques and policies including salesmanship, retailing, and wholesaling.

This will aid the students to develop and showcase their skills in selling, demonstrating, and
presenting products and services professionally.
 ABOUT THE AUTHOR

The Author, Rhonalyn C. Papa, is a full-time faculty member of the Management

Department of Cavite State University Naic. She finished Master in Business Administration
in Cavite State University Indang and earned six units in Doctor of Philosophy in Business
Administration in De La Salle University, Dasmariñas. She started her teaching career in
2009 wherein she teaches mostly marketing subjects.

She is currently residing at Calumpang Cerca, Indang. Cavite

 MODULE 2: KNOWLEDGE AND SKILL REQUIREMENT

Objectives:

After the completion of the unit, students will be able to:

1. determine the types of customers
2. discuss the organizational buying and selling
3. discus the trends in international buying
4. determine the types of organizational buying decisions.

Instructions to Learners:

1. The learner is advised to answer the pre-test to determine how much is already
known by the learner about the topic and the post-test to find out how far the learner
learned from the module.
2. The answered pre-test and the activities (Activity 6) should be submitted on
November 26.
PRE-TEST: How much did you know?

Answer the following based on your learned knowledge.

1. How do you face a rude behavior from a customer?
_
 LESSON 1: BUYING BEHAVIOR AND THE BUYING PROCESS

What is Consumer Behavior?

Consumer behavior refers to how people decide what products or services to buy,
how they use them, and what they do with them when they're done. It also involves
understanding their feelings, thoughts, and actions related to these choices. This field draws
insights from various sciences like psychology, biology, chemistry, and economics (Velentin,
2019).

People purchase things for themselves, their family, or to give as gifts.

Consumer behavior refers to how we decide to buy, assess, use, and get rid of things
we purchase (Raheem, 2023).

It helps in understanding:
i. Why consumers make the purchases that they make?

ii. What factors influence consumer purchases?

iii. The changing factors in our society.

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer.

A retailer needs to analyze buying behavior for:

i. Buyer’s reactions to a retailer’s marketing strategy has a great impact on the

retailer’s success.

ii. The marketing concept stresses that a retailer should create a marketing strategy
that satisfies (gives utility to) customers, therefore need to analyze what, where, when and
how consumers buy.

iii. Retailers can better predict how consumers will respond to marketing strategies.

Types of Consumers: Who Buys and When

In the bygone era of marketing, strategies predominantly adhered to a universal

formula, aiming to disseminate messages far and wide. The primary focus was on reaching
the largest audience possible. However, today's dynamic marketplace demands a more
precision-focused approach. The key to success lies in connecting with the right customers
at the right moment, surpassing the antiquated approach of seeking sheer exposure with the
hope that something will resonate (SOCO Sales Training, 2023).

Extensive research in the field of marketing reveals the existence of distinct consumer
archetypes, each necessitating nuanced techniques for attraction and retention.
Understanding these consumer segments is imperative for effective modern marketing.
Here's a comprehensive insight into consumer-centric marketing.

What Are the Types of Customers?

Customer types can vary, but they often fall into common categories:

The Analytical Customer

Analytical customers have a preference for data-driven information and in-depth

explanations. They take their time to assess options, compare features, and make decisions
based on a rational analysis. Sales professionals dealing with analytical customers should
concentrate on delivering comprehensive product information, technical specifications, and
objective data to substantiate their claims.

Selling to The Analytical Customer:

 Supply detailed information and data to substantiate your assertions.

 Emphasize the technical specifications and characteristics of your
product.
 Be well-prepared to address their inquiries with evidence and logic.

The Assertive Customer

Assertive customers are self-assured and decisive. They value efficiency and often
adopt a direct, results-oriented approach. When dealing with assertive customers,
salespeople should maintain confidence, offer succinct responses, and underscore the key
advantages and outcomes their products or services provide.

Selling to The Assertive Customer:

 Communicate with confidence and conciseness.

 Highlight the key benefits and results your product or service delivers.
 Propose efficient, time-saving solutions.

The Relationship-Oriented Customer

Relationship-oriented customers prioritize the establishment of rapport and trust with

sales professionals. They value personalized attention, open communication, and long-term
partnerships. Salespeople should allocate time to nurture relationships, actively listen to their
needs and concerns, and provide continuous support to cater to these customers.

Selling to The Relationship-Oriented Customer:

 Dedicate time to cultivating rapport and trust.

 Engage in active listening to understand their needs and issues.
 Extend personalized attention and ongoing support.

The Price-Conscious Customer

Price-conscious customers prioritize finding the best value and may approach added
value skeptically. Sales professionals should underscore cost savings, return on investment,
and emphasize any unique features or benefits that justify the price.
 Selling to The Price-Conscious Customer:

 Highlight the cost savings and value for money provided by your
product.
 Showcase any discounts, promotions, or competitive pricing.
 Illustrate the long-term advantages and return on investment of your
product.

The Impulsive Customer

Impulsive customers tend to make rapid decisions based on emotional appeal.

Salespeople can tap into their emotions by spotlighting positive experiences, benefits, and
immediate gratification offered by their products or services.

Selling to The Impulsive Customer:

 Appeal to their emotions by highlighting positive experiences and

benefits.
 Emphasize the instant gratification and convenience your product
provides.
 Create a sense of urgency through limited-time offers or exclusive
deals.

The Risk-Averse Customer

Risk-averse customers are cautious and seek reassurance before making decisions.
Sales professionals should address potential concerns, offer guarantees, testimonials, and
references to instill confidence and mitigate perceived risks.

Selling to The Risk-Averse Customer:

 Address their concerns and provide reassurance.

 Offer guarantees, warranties, or return policies.
 Provide testimonials, case studies, or references to establish credibility.

What Every Type of Customer Needs to Make a Purchase

Irrespective of their customer profile, all individuals share common needs when
making a purchase:

1. Information: Customers rely on precise, relevant product or service details,

encompassing features, benefits, and pricing.

2. Personalization: Customers desire a tailored experience that recognizes their

uniqueness, sparing them the need to repeat themselves.

3. Trust: The bedrock of any purchase, trust hinges on the perceived quality of the
product, its reliability, and the reputation of the brand or company.

4. Value: Customers scrutinize the value proposition, seeking to understand how the
offering addresses their specific needs and surpasses alternatives.
 5. Assurance: Assurance can come in many forms, from guarantees, warranties, and
return policies to positive reviews and testimonials, offering customers the confidence
to proceed.

6. Convenience: The ease of the purchasing process is paramount. Customers

appreciate flexible communication channels, a seamless buying experience,
uncomplicated payment options, and efficient customer service.

7. Support: Timely issue resolution and readily available assistance are universal
customer expectations. Post-purchase support, encompassing customer service,
technical aid, or product training, holds significant sway over a customer's decision-
making process.

Organizational Buying and Selling

The organizational buying process is a model that explains how businesses go about
making purchase decisions. It consists of five stages: problem recognition, general need
description, product specification, supplier search, and evaluation of alternatives.

In each stage, buying organizations evaluate the decision-making criteria relevant to

their situation and use them to narrow down their options until they find the product or
service that best meets their needs.

Example 1: Microsoft Corporation

Microsoft Corporation is an example of a company that has successfully navigated

the organizational buying process. Microsoft first identified its need for cloud computing
services, which triggered its problem recognition stage.

Next, it evaluated various vendors who offered cloud computing services in order to
determine which one best met its needs.

Finally, it evaluated different options and selected Amazon Web Services (AWS) as
its cloud computing provider based on cost, scalability, and reliability considerations. By
following this systematic approach to evaluating potential suppliers and making an informed
decision based on all available data points, Microsoft was able to select a supplier that best
fit its needs.

Example 2: Apple Incorporated

Apple Incorporated is another example of a company that has successfully navigated

the organizational buying process. In order to produce iPhones in mass quantities at
competitive prices, Apple needed to find suppliers who could provide parts at a low cost but
with high quality standards.

After identifying its need for parts suppliers Apple began its supplier search stage by
evaluating numerous potential vendors from around the world before ultimately selecting
several suppliers from China based on price negotiations as well as quality considerations
such as reputation and delivery timescales.

By taking an organized approach to supplier selection Apple was able to source parts
at competitive prices while still ensuring that its iPhones meet customers’ expectations in
terms of quality and performance.
 Complexity of the Organizational buying process – typical organizational purchase is
much larger and more complex than the typical consumer purchase, because organizations
use highly trained, knowledgeable purchasing agents to make these decisions.
And many other people in the organizations are involved in purchase decisions
including engineers, production managers, business analysis, and senior executives.
The complexity of organizational purchase decisions mean that salespeople must be
able to work effectively with a wide range of people working for the customer and their
company.

Derived Versus Direct Demand

Derived demand means that purchases made by the customers ultimately depend
on the demand for their products – either organizations or consumers. All factors of
production have derived demand.

Direct demand is a demand for a product or service for its own sake, and not for
what can be derived from it. Independent for the demand of other product. All the finished
goods have a direct demand.

Organizational Buying Process

The process of organizational buying involves intricate stages with various

participants, decision-makers, and influencers. To effectively target and market to potential
customers, it's crucial to grasp the intricacies of this process.

Organizational buying unfolds through five distinct stages: needs identification,

supplier search and evaluation, purchase decision-making, purchase implementation, and
supplier performance review. Let's delve deeper into each of these phases:

Needs Identification:

This initial stage centers around recognizing an organization's requisites for goods or
services. Different departments within the organization may harbor varying needs to support
their daily operations.

Supplier Search and Evaluation:

During this phase, the organization conducts a comprehensive search for potential
suppliers capable of meeting its requirements. Factors such as price, quality of
goods/services, delivery timelines, and customer service levels come under scrutiny as
organizations assess potential suppliers.

Purchase Decision Making:

Following exhaustive research and evaluation of potential suppliers, the organization

enters the decision-making phase. This often involves multiple stakeholders to ensure
comprehensive perspectives are considered when selecting a supplier.
Purchase Implementation:

Once a supplier is chosen, the implementation of the purchase agreement takes

center stage. This entails contract signing and defining payment terms, ensuring clarity on
the specifics of the purchase, along with any additional costs linked to delivery or installation.

Supplier Performance Review:

Post-contractual arrangements, it's essential to review the supplier's performance at

each stage of the purchasing process. This evaluation helps identify areas for improvement
in future purchases, guiding organizations to adapt their approach when selecting new
suppliers.

The Role of Salespeople in the Buying Process:

Salespeople hold a pivotal role in the organizational buying process due to several
reasons:

 They collaborate with users to ensure the product meets performance expectations.
 They work with purchasing agents to ensure satisfactory communication and
delivery.
 Their contribution is crucial for securing a positive evaluation of the product and
positioning themselves as qualified suppliers for future procurement.

Types of Organizational Buying Decisions:

Organizational buying decisions come in various forms, including:

1. New Task: When an organization purchases a product or service for the first time.

2. Straight Rebuy: The organization procures the same product from the same source it
previously used when the need arose.

3. Modified Rebuy: In this scenario, the organization has acquired the product or a
similar one in the past but seeks new information or considerations for the purchase.

Who makes the buying decision?

1. The Initiator: This individual is the one who initially suggests the need for a product or
service to be acquired. They bring forth the idea and take the first step in the
process.

2. The Influencer: This person's opinions and viewpoints carry weight in the decision-
making process. Their ideas hold significance, and they possess a persuasive ability
to drive actions.

3. The Decider: The ultimate decision-maker in the purchase process. They determine
what, where, when, how often, and how much to buy. The Decider's verdict is final
and shapes the purchase and its parameters.

4. The User: These are the individuals who actually use or consume the product or
service. They represent the end-users, the ones who directly benefit from or interact
with the offering.
 5. The Controller: This role involves setting the budget for the financial aspect of the
purchase, determining the available funds and resources.
6. Buyers: These individuals are responsible for engaging with sellers or suppliers,
managing the transactional aspect of the purchase process.

SUPPLIER EVALUATION and CHOICE

 The needs of both the organization and the individuals making the decisions affect
the evaluation and selection of products and suppliers

 RATIONAL NEEDS - Are directly related by/to the performance of the

product; or Satisfaction

 EMOTIONAL NEEDS – are associated with personal rewards and

gratification of the person buying the product.

ORGANIZATIONAL NEEDS and CRITERIA

 ECONOMIC CRITERIA – organizational buyers are now taking a more sophisticated

approach to evaluate the cost of equipment.

 Because the objective of businesses is to make profit.

 Instead on focusing in the purchase price, they consider all other costs
included in the operation

 QUALITY CRITERIA – to improve the quality of the products they sell; firms are
adopting a total quality management approach to manage business.

 Because quality and reliability of the products are as important to their as

price.

 SERVICE CRITERIA – Organizational buyers want more than products that are low
cost, perform reliably, aesthetically pleasing. They also want supplier that will work
with them to solve their problems.

 Because everybody has the right to be accommodated well.

TRENDS IN ORGANIZATIONAL BUYING

 Increasing Importance of Purchasing Outsourcing
Agents

Centralized Purchasing Supply Chain Management

The internet and B2B Selling

Global Sourcing

POST-TEST: How much did you know?

1. Why communication is important in building relationship with customers?

Activity 6

Research: On the current pandemic situation, research at least three (3) current trends in
Organizational Buying here in the Philippines and compare it to the organizational buying
trends prior the pandemic

Note: the activity should be submitted on our next face-to-face meeting.

 References

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